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Problem 22-06 Management of TSC, Inc. is evaluating a new $78,000 investment with the following estimated cash flows: Year 1 Cash Flow $18,000 2 28,000

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Problem 22-06 Management of TSC, Inc. is evaluating a new $78,000 investment with the following estimated cash flows: Year 1 Cash Flow $18,000 2 28,000 3 41,000 67,000 The firm's cost of capital is 9 percent and the project will require that the firm spend $26,000 to terminate the project. Use Appendix B to answer the question. Use a minus sign to enter a negative value, if any, Round your answer to the nearest dollar The NPV of the investment is 59624 Should the firm make the investment? The firm should make the investment Interest Factors for the Present Value of One Dollar Time Period 9 WN- * , 146 5 2 12 99

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